This refers to the inspection conducted on August 28 and 30, 2001, at
your San Juan, Puerto Rico facility. The purpose of the inspection was
to examine activities conducted under your license as they related to
safety and compliance with the Commission's rules and regulations and
with the conditions of your license. The
results of the inspection, including one apparent violation, were discussed
with you on August 30, 2001, and formally transmitted to you by letter
dated October 2, 2001. This letter also provided you the opportunity to
either respond to the apparent violation in writing or request a predecisional
enforcement conference. The NRC confirmed your desire not to attend a
predecisional enforcement conference, and by letter dated October 11,
2001, your Radiation Safety Officer (RSO) provided Redondo Construction
Corporation's (RCC) response to the apparent violation and addressed the
causes and corrective actions to prevent recurrence. We have reviewed
the response and have concluded that sufficient information is available
to determine the appropriate enforcement action in this matter.

Based on the information developed during
the inspection and the information that you provided in your response,
the NRC has determined that a violation of NRC requirements occurred.
The violation is cited in the enclosed Notice of Violation (Notice) and
the circumstances surrounding it are described in detail in the subject
inspection report. The violation involved the unauthorized transfer of
three portable gauges to Redondo/Entrecanales, S.E., contrary to the requirements
of 10 CFR 30.41(b)(5). The three portable gauges, each containing millicurie
quantities of Cesium-137 and Americium-241, were transferred on March
8, 2000, to Redondo/Entrecanales, S.E. (RESE), an entity that was not
authorized to receive such byproduct material under the terms of a specific
or general license issued by the Commission or an Agreement State. In
its response, RCC acknowledged and expanded on the circumstances that
led to the unauthorized transfer of the gauges, and indicated its belief
that the cause of the violation was the lack of effective communication
due to the repetitive turnover of the Radiation Safety Officer, and the
dissolution of a joint venture project involving RCC and RESE.

In this case, there were no actual consequences
associated with the unauthorized transfer because the gauges were handled
by qualified individuals who took appropriate safety precautions. However,
the unauthorized transfer of licensed radioactive material is of concern
to the NRC because such transfer can result in improper handling of radioactive
material and potential radiation exposures to unauthorized persons. In
addition, it impedes our ability to perform our regulatory responsibilities.
These responsibilities include oversight of the use of the material, to
provide adequate assurance to the public that radioactive materials are
used safely. In this case, the NRC was unaware of RCC's transfer of the
gauges, and as such could not assure that the recipient would use or store
licensed byproduct material safely. As such, this violation is being categorized
at Severity Level III in accordance with the "General Statement of Policy
and Procedures for NRC Enforcement Actions - May 1, 2000" (Enforcement
Policy), NUREG-1600, as amended on December 18, 2000.

In accordance with the Enforcement Policy,
a base civil penalty in the amount of $2750 is considered for a Severity
Level III violation occurring prior to November 5, 2000. Because your
company has not been the subject of escalated enforcement action within
the last two inspections, the NRC considered whether credit was warranted
for Corrective Action
in accordance with the civil penalty assessment process described in Section
VI.C.2 of the Enforcement Policy. Your corrective action included, in
part, the prompt and proper transfer of the gauges to an entity authorized
to receive such byproduct material, improved communication between RCC
project managers and the RSO regarding the acquisition and transfer of
radioactive material, and employee training regarding the procedure for
acquisition and custody of radioactive material. Based on the above, NRC
concluded that your actions were prompt and comprehensive, and credit
was warranted for the factor of Corrective Action.

Therefore, to encourage prompt and comprehensive
correction of violations and in recognition of the absence of previous
escalated enforcement action, I have been authorized to propose that no
civil penalty be assessed in this case. However, similar violations in
the future could result in further escalated enforcement action and substantial
civil penalties. In addition, issuance of this Notice constitutes escalated
enforcement action, that may subject you to increased inspection effort.

The NRC has concluded that information regarding
the reason for the violation, the corrective actions taken and planned
to correct the violation and prevent recurrence, and the date when full
compliance was achieved is already adequately addressed on the docket
in this letter and in RCC's October 11, 2001, letter. Therefore, you are
not required to respond to this letter unless the description therein
does not accurately reflect your corrective actions or your position.
In that case, or if you choose to provide additional information, you
should follow the instructions specified in the enclosed Notice.

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy
of this letter, its enclosure, and your response, if you choose to provide
one, will be made available electronically for public inspection in the
NRC Public Document Room or from the Publicly Available Records (PARS)
component of NRC's document system (ADAMS). ADAMS is accessible from the
NRC Web site at the Public NRC Library
.

If you have any questions regarding this
matter, please contact Douglas M. Collins, Director, Division of Nuclear
Materials Safety at 404-562-4700.

Sincerely,

/RA/

Bruce
S. Mallett
Acting Regional Administrator

Docket No. 030-29105
License No. 52-24834-01

Enclosure: Notice of Violation

cc w/encl: Commonwealth of Puerto
Rico

NOTICE
OF VIOLATION

Redondo Construction Corporation
San Juan, Puerto Rico

Docket No. 030-29105
License No. 52-24834-01
EA-01-240

During an NRC inspection conducted on August
28 and 30, 2001, a violation of NRC requirements was identified. In accordance
with the "General Statement of Policy and Procedures for NRC Enforcement
Actions - May 1, 2000," NUREG-1600, the violation is listed below:

10 CFR 30.41(b)(5) provides, in part, that no licensee shall
transfer byproduct material except to a person authorized to receive such
byproduct material under the terms of a specific or general license issued
by the Commission or an Agreement State.

Contrary to the above, on March
8, 2000, the licensee transferred byproduct material consisting of Cesium-137
and Americium-241 contained in three portable gauges to Redondo/Entrecanales,
S.E., an entity that was not authorized to receive such byproduct material
under the terms of a specific or general license issued by the Commission
or an Agreement State.

This is a Severity Level III violation (Supplement VI).

The NRC has concluded that information regarding
the reason for the violation, the corrective actions taken and planned
to correct the violation and prevent recurrence, and the date when full
compliance was achieved is already adequately addressed on the docket
in the letter transmitting this Notice of Violation (Notice) and in Redondo
Construction Corporation's letter of October 11, 2001. However, you are
required to submit a written statement or explanation pursuant to 10 CFR
2.201 if the description therein does not accurately reflect your corrective
actions or your position. In that case, or if you choose to respond, clearly
mark your response as a "Reply to a Notice of Violation," and send it
to the U.S. Nuclear Regulatory Commission, ATTN: Document Control Desk,
Washington, DC 20555 with a copy to the Regional Administrator, Region
II within 30 days of the date of the letter transmitting this Notice.

If you contest this enforcement action,
you should also provide a copy of your response, with the basis for your
denial, to the Director, Office of Enforcement, United States Nuclear
Regulatory Commission, Washington, DC 20555-0001.

Because any response will be made available electronically for public
inspection in the NRC Public Document Room or from the Publicly Available
Records (PARS) component of NRC's document system (ADAMS), to the extent
possible, it should not include any personal privacy, proprietary, or
safeguards information so that it can be made available to the public
without redaction. ADAMS is accessible from the NRC Web site at the Public NRC Library
. If personal privacy or proprietary
information is necessary to provide an acceptable response, then please
provide a bracketed copy of your response that identifies the information
that should be protected and a redacted copy of your response that deletes
such information. If you request withholding of such material, you must
specifically identify the portions of your response that you seek to have
withheld and provide in detail the bases for your claim of withholding
(e.g., explain why the disclosure of information will create an unwarranted
invasion of personal privacy or provide the information required by 10
CFR 2.790(b) to support a request for withholding confidential commercial
or financial information). If safeguards information is necessary to provide
an acceptable response, please provide the level of protection described
in 10 CFR 73.21.

In accordance with 10 CFR 19.11, you may be required to post this Notice within two working days.